Mitel Discusses the Decision to Reduce Their Distribution Network
The quest for "Mutually Relevant" distributors
Leading communications technology and /unified-communications/ucaas company, Mitel, recently announced that they would be cutting down their distribution network by a significant portion. The slash reduces a system of over 60 participants to a maximum of 20 distributors, now that some previous partners have been declared not “fit for purpose.”
In an interview about the decision, Jeremy Butt, the Mitel global SVP said that since he took over as Mitel’s global channel boss, his team has been reducing the number of distributors Mitel are working with that aren’t “mutually relevant.” According to Jeremy, the network needed some serious refinement, to make sure that they were delivering the right experience to everyone involved.
Refining the Mitel Distribution Network
Mitel’s SVP noted that, in the past, the wide selection of distributors that company had worked with might have been relevant. However, as the communication environment has continued to evolve, some connections just weren’t appropriate anymore. In Butt’s words,
“You can’t share your love too wide.”
Although significant cuts have already been made, Mitel is continuing to reduce their network even further, with a few large distribution contracts set to expire by the end of 2018. One business that continues to make the grade is Westcon Comstor – the communications business that Jeremy was executive VP for until he joined Mitel in October of 2017.
Last month, Mitel announced Westcon Comstor to be its only pan-international distributor. This is the first time the vendor has had only one pan-international distributor, and Jeremy addressed the
potential rumours around bias before they could begin, by stating that his previous experience with the company had nothing to do with the decision. Butt suggested that his knowledge of the business meant that he put the deal under greater scrutiny.
Ultimately, however, Westcon Comstor’s large footprint and wide selection of local relationships made it an obvious choice for a pan-international distributor.
Moving Ahead with a New Strategy
Even though the new deal has raised some eyebrows in the communications world, Butt states that he’s comfortable with only having one distributor for some countries. Jeremy believes that the personal relationships that Mitel can hold with its reduced network will make the partnerships more effective.
The UK is just one of the markets in which Mitel has chosen to partner with more than a single distributor. Exertis was added to the list of partners available in June, along with Trust Distribution and Westcon Comstor. The sudden transformation in Mitel’s distribution strategy has undoubtedly caught some previous partners off guard. However, Mitel believes that it’s doing the right thing for the future of the company, and the benefit of its customers.